[Prop 1691] Terra v2.2: A Fair 11-point Confidence Restoration Plan for the Terra Enterprise

The new project has to be made successful and transferred ownership under a different brand of course. We do not have any confidence in new reboots without solving the fundamental issues.

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Destructive Support (Recommend: NO)

Reverse Staking Concept

The reverse staking concept is essentially earning LUNA as interests for Anchor savings deposits and converting them into UST to reduce the LUNA supply

@kayserirum:
A simpler approach is to have all network exchange fees taxed at 0.1% paid for in LUNAs. Over time the passive tax eats away at the total LUNA supply to raise its value, and new USTs can only be minted by collateralizing with stablecoins. In effect, this burns down LUNAs at the same time the collateralization of USTs goes up. A win-win.

Well yes but in my proposal we are also creating a new stablecoin which can hold its own usecase and bring in more transactions.

I agree however to a transaction fee of 0.1% to burn the current supply as well

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Our concern is any new stable created that is not backed by actual stablecoins has very low confidence of succeeding. After this level of blow up, most people will be pretty hesitant to touch anything Do Kwon and Terra Builders Alliance ever creates again, and most likely would need regulatory approval moving forward. These guys are planning to erase all debt obligations to reboot Terra v2 to be all LUNAv2 at first then figure out how to create a USTv2. They are doing this to “wipe out bad debt”. Things make a lot more sense when you read everything that the TFL and the TBA have said from the perspective of major owners that have lost their wealth. See for yourself. The Alliance were allocated at 20% at genesis. Of course they want all of their wealth back and thus they are heavily pushing all over social media for people to accept the best deal for themselves and a pittance for everyone else. They have people thinking that if you give the broke anything they will take it and like it. This is how you destroy communities. The TBA is fine with this because it is really Do Kwon that goes to prison if there is any crime. They do not see themselves as co-conspirators to a elicit a criminal enterprise using the governance voting without all actual LUNAv1 and USTv1 holders in default representing 100% of the remaining assets to weigh in on how to restructure debt that cannot be paid with the assets they currently do not have.

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Constructive Support

Select a New Representative Concept

The select a new representative concept seeks to quickly assign a representative for the LUNA “classic” to take control of communications with established central exchanges so that they will recognize the de facto new management of the old project rather than the new project

@Auris:
This is a brilliant suggestion because Binance already said they would only support a burn.

Nov 15, 2018 Binance probably will not replace LUNA with LUNC

May 13, 2022 Binance says (Terra) cannot mint out of bankruptcy all the time

May 13, 2022 Binance requested TFL for response but they were not, says TFL behaved unprofessionally compared to Axie Infinity who had a plan and remained in constant communication with them

May 14, 2022 Binance advises do not abandon the supporters by forking, just burn, and transactions cannot be voided

May 15, 2022 Binance statement:
“5/ The last few days, we tried hard to support the Terra community. In my tweets, I am simply pointing out the potential issues from my understanding. Minting, forking, don’t create value. Buying back, burning does, but requires funds. Funds that the project team may not have.”

What does Terra leadership do? Burning everyone because we know they are trying to regain their own wealth.

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Wow this proposal is a real gem.

About Do,if he want v2 to success he need to rebuild his reputation .it is superbad right now.

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How can we make this proposal happen!

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Destructive Support (Recommend: NO)

Reset Governance Concept

The reset governance concept allows both LUNA and UST to burn for a new governance token called xLUNA assuming the UST would repeg and balance the system back

@0xab3d:
Please read the mechanics section of our proposal to see that sentiment for Terra is very low. This means no matter how many tokens are burned the UST would never repeg.

The only way to repeg is by reducing UST debt obligations in a fair way and boot out the TFL and SBA shareholders that want to savage the remaining value to rebuild a new network and ditching their debt responsibilities. All LUNAv1 and USTv1 holders are technically the new master shareholders and Do Kwon and gang are simply pushed out and need to start from scratch.

We have proposed to add tax to fund the system. As the execution team does a good job restoring trust and increase utility, the taxes will naturally collect all the funds we need to get out of this mess.

A lot of people just say burn the LUNA but they have created no demand for it, and on the exchanges LUNAs and USTs barely trigger any tax because the tokens just sit in the CEX’s wallet until withdraw. How much tax are all these campaigns generating? Zero. That is why we focus so heavily on saving the enterprise first with all the pieces together to save the ecosystem.

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I see, thanks for sharing this. I would love to be involved in any future plans if you think you can do anything to save the project. For now, I just have to keep my LUNAv1 and USTv1 on the CEX’s?

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It depends. Some CEX have announced they’re closing shop. You need to move them to your wallet if you plan to keep them. The wLUNA and wUST are problematic. We have members that hold these from Coinbase and since the inter-bridge chain (IBC) have been disabled there is no way to unwrap them and put them into the wallet. Perhaps as part of this plan if we have the community members who could help run validation nodes to enable the IBC so that we can help everyone freefloating in space unwrap and move into the Terra Station wallet as the issues get fixed and network restoration. Since the wrapped goods are technically ERC20 that it is possible to park them into MetaMask so that when an IBC is ready that we can re-enable them again. The system behind Shuttle is shutting down and we would need all the data files from the network before shutting down to resume it. Will leave this details to later execution when the proposal gathers steam. Do Kwon would probably love to get rid of Terra v1 code support right now so getting the systems handed over might be ok. He still owes the debt obligations. We are not assuming his liabilities. We just want the system back to a condition where it can function again and burn both LUNAs and collateralize USTs.

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Has this proposal been put forward for voting? Why aren’t there more discussions around it? What can be done to at least bring more attention to it. The other discussions seem to be at best naïve and Ill thought out at worst have an agenda.

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Do you believe it is ready for voting. We can put it for a vote and go from there.

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By far more comprehensive than the other proposals so far. If anything these core ideas need to be forefront of the minds when considering what to do next.

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This is awesome, worth reviewing !
Thank you for your contribution, this deserve higher consideration.

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Thank you for sanity. This proposal among a couple others I would vote for. There may be more than one plausible solution and I think this is one such.
Edit: Ps do you run a terra chain validator? would stake

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One of the best proposals. Need to put it up for vote.

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Thanks for taking the time to respond.

However, going back to the LUNAv1 discussion, once the new LUNA is out, wouldn’t the users just try to escape the system as the trust is broken now and sell out everything? Wouldn’t this be a second crash! Is it worth it to keep the USTv1 and LUNAv1?

Also, if Do wants to get out of the debt and the whole picture, how feasible it is for him to handover everything to the community, validators let’s say!

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Bump.

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Given the dire situation that we are in and TFL’s complete abandonment of the full community (his community is just builders and VCs), that by getting UST holders to agree to move short-term debt to long-term debt and be granted ~1/3 of their debt as LUNAv2 shares, that it will be the UST holders who have full incentives to stay on the network. If they sell before any value is restored then it is a double jeopardy. Both their new LUNAv2 and long-term debt in bonds would be worthless. People can separately recover the value of the debt directly from Do Kwon and company. We want Terra v1 to remain functioning until a proper upgrade (no fork) to Terra v2 when ready so that ownership is preserved and we begin to repair the issue through working toward increasing commerce which everyone should agree that it is the only real driver of taxes and not much taxes would be collected from CEX.

As per your question on handing over everything to the community, let us discuss with Do Kwon and LFG after this proposal passes. Our offer to him will be in terms of salary and performance bonuses, bonuses which can be used to buy LUNAs cheaply and restore some wealth the right way. To carve out shares now is to get risk-free shares. To buy shares later is to put your faith into your own performance.

It is interesting how the organization behaves the moment the pressure is on. How do 6.5T LUNA voters get to vote if the staking is disabled. The voter suppression is strong with this one. No court will recognize the outcome.

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This is a precise & excellent application of solutions to an utter & total failure. I can tell it’s been created by someone that understands how to extrapolate complex data. It’s exactly what is needed.

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